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Extracts from Legislative Acts
According to Article 18.1 of the “Law on the Use of Renewable Energy Sources in Electricity Production”, producers have the following rights: 18.1.2. to sell the electricity generated.
Pursuant to Clause 1.1 of the “Rules for the Use of Electricity”, approved by Resolution No. 18 of the Cabinet of Ministers of the Republic of Azerbaijan dated 2 February 2005, an independent power producer shall mean a legal entity owned by the state, various sectors of the economy, or private organizations, which supplies consumers with electricity and heat energy through its own energy network via the state electric power enterprise or energy supply enterprises.
According to the first sentence of Clause 12.4 of these Rules, an independent power producer may sell the electricity it generates to a consumer, the state electric power enterprise, and/or an energy supply enterprise.
Pursuant to the second paragraph of Clause 12.4 of the Rules, an independent power producer supplies consumers with electricity through transmission and/or distribution networks by agreeing on transmission or distribution tariffs with its own electric network, as well as with the state electric power enterprise and/or the energy supply enterprise. The purchase and sale of electricity between an independent power producer and a consumer shall be regulated in accordance with the contract concluded between them.
The current legislation of the Republic of Azerbaijan does not provide for any restrictions on consumers purchasing electricity from third parties, including directly from a producer.
